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Occupy the SEC (OSEC) works to ensure that financial regulators act in the public interest, not for Wall Street and its lobbyists. It is a group of concerned citizens, activists, and financial professionals with decades of collective experience working at many of the largest financial firms in the industry. The "SEC" in its name refers to the US Securities and Exchange Commission, the primary regulator for the financial industry but OSEC's scope covers all financial regulatory activity.

Among its members are employees or former employees of some of the largest financial firms including Morgan Stanley, Deutsche Bank, Bear Stearns, D.E. Shaw, Merrill Lynch and JPMorgan Chase.[1][2] They have been described as "a counterweight to the deep-pocket lobbying push" by financial firms against reform.[2]

History

OSEC was founded in October 2011 as a working group of Occupy Wall Street, the protest movement which started in Zuccotti Park in Lower Manhattan on September 17, 2011. After initially meeting on a bench in Zuccotti Park, late October 2011,[2] the group evolved into a bi-weekly "book club" at a diner near the park,[3] and now meets weekly in the atrium of 60 Wall Street.[4] The group first gained attention after tackling a response to the proposed Volcker Rule, part of the Dodd-Frank Act of 2010, that would severely limit proprietary trading at commercial banks, similar to the Glass Steagall Act of 1933. Occupy the SEC drafted answers to questions regarding the proposed rule, which were included in a 325-page comment letter submitted to the SEC on February 13, 2012.

Volcker Rule Comment Letter and Follow-up

Submitted by Occupy the SEC to the U.S. Securities and Exchange Commission on February 13, 2012, the 325-page comment letter[5] was hailed as "amazing", describing how the authors went through the rule "line by line, explaining where it’s useless and where it can and should be improved."[6] Others suggested Occupy the SEC was doing "the day-in, day-out grind of policymaking—calling legislators, responding to regulatory agencies, learning the issues..."[7] Occupy the SEC's comment letter was close to the lengthiest and most detailed of the 16,000 letters sent to the SEC,[4] with the vast majority coming from industry insiders.

On February 26, 2013, Occupy the SEC filed a suit in the Eastern District Court of New York naming the Federal Reserve, the SEC, CFTC, OCC, FDIC, and the U.S. Department of the Treasury calling for implementation of the “Volcker Rule” (Section 619 of the Dodd-Frank Act of 2010).[8]

Other Work

In June 2012, Occupy the SEC submitted a 7-page letter to the Senate Banking Committee prior to JP Morgan CEO Jamie Dimon's testimony.[9] The letter, written in partnership with the Occupy Alternative Banking group included 11 detailed questions about the multi-billion dollar "London Whale" loss.[10]

Occupy the SEC and the OWS Alternative Banking Group submitted an open letter to the Financial Stability Oversight Council (FSOC) supporting a proposal that FSOC require the SEC to address systemic risks presented by money-market funds on November 5, 2012. The letter also called for a transparent regulatory process and stated principles that the regulations should adhere to.[11] Shortly after this letter, the FSOC proposed recommendations.[12]

In December 2012, Occupy the SEC submitted an amicus brief in the case of Gabelli v. SEC, in which the Supreme Court will decide when the statute of limitations clock begins for certain fraud actions brought by the government - from the time the fraud was last committed or from the time the fraud was discovered.[13] [14]

On February 15, 2013, Occupy the SEC submitted a formal comment letter on money market fund reform to the Financial Stability Oversight Council (FSOC). The letter urged FSOC to move forward with money market reforms, supported the proposals for floating NAVs and buffers to absorb losses but pointed out that broader reforms were required as well.[15] [16]

In July 2013, Occupy the SEC submitted an amicus brief to the US Supreme Court regarding overly broad interpretations of securities litigation laws.[17]

Reception

According to The Economist, Occupy the SEC's "contributions to the debate on regulatory reform (including a tome on the Volcker Rule) have been well-received even by some leading regulators".[18]

References

  1. ^ http://www.occupythesec.org/
  2. ^ a b c "Occupy the regulatory system". 27 April 2012. Retrieved 2013-02-12.
  3. ^ http://www.businessweek.com/finance/occupy-the-sec-weighs-in-on-the-volcker-rule-02142012.html
  4. ^ a b http://www.bloomberg.com/news/2012-03-01/occupy-the-sec-writes-new-volcker-rule-script-commentary-by-susan-antilla.html
  5. ^ "OSEC comment letter re: Volcker Rule". 13 February 2012. Retrieved 2013-02-11.
  6. ^ http://blogs.reuters.com/felix-salmon/2012/02/14/occupys-amazing-volcker-rule-letter/
  7. ^ http://www.slate.com/blogs/moneybox/2012/0/14/occupy_the_sec_releases_325_page_comment_letter_on_quot_volcker_rule_quot_proposals.html
  8. ^ "OSEC mandamus suit re: Volcker Rule". 26 February 2013. Retrieved 2013-02-27.
  9. ^ http://www.huffingtonpost.com/2012/06/12/occupy-the-sec-jamie-dimon_n_1591465.html
  10. ^ "OSEC / Alternative Banking Letter re: Jamie Dimon". Retrieved 2013-02-12.
  11. ^ "OSEC comment letter to FSOC on Money-market fund risks" (PDF). 5 November 2012. Retrieved 2013-02-11.
  12. ^ "FSOC proposal on Money-market fund reform". 13 November 2012. Retrieved 2013-02-11.
  13. ^ "Occupy the SEC Submits Amicus Brief to the Supreme Court in Gabelli v. SEC". 13 December 2012. Retrieved 2013-02-12.
  14. ^ "Occupy the SEC Amicus Brief to the Supreme Court in Gabelli v. SEC" (PDF). 13 December 2012. Retrieved 2013-02-12.
  15. ^ "Occupy the SEC blog post". 19 February 2013. Retrieved 2013-02-21.
  16. ^ "Occupy the SEC comment letter on regulations.gov". 15 February 2013. Retrieved 2013-02-21.
  17. ^ "OSEC Troice Amicus". 29 July 2013. Retrieved 2013-07-29.
  18. ^ "Occupy: One year on, what has it achieved?". The Economist. 22 September 2012. Retrieved 2013-02-12.
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